Illiquidity Fuels Africa Gains

Investors' craving for growth finds few outlets in these frontier markets. That should keep pushing share prices higher in 2014.

As the BRICs' growth slows, frontier Africa, where an estimated one billion people reside, could be the next big prize for investors. The region's stocks are likely to outperform for a second year in 2014. The prospect of high growth is a contributing factor, but liquidity—or the lack thereof—plays a key role, too.